Off-Tract Contributions: A Cautionary Tale

November 25, 2013Articles Law360

Henry Kent-Smith’s article “Off-Tract Contributions: A Cautionary Tale” was published in the November 25, 2013 issue of Law360. A synopsis is noted below.

The New Jersey state appeals court released an unpublished opinion in 520 Victor Street Condominium Association v. Raymond Plaza and The Township of Saddle Brook Zoning Board. Docket No. A5655-10T3.

The Appellate Division invalidated all approvals granted to Raymond Plaza for the construction of multi-story residential buildings, on the basis that the applicant agreed to a $400,000.00 contribution for off tract improvements related to sewer and storm water improvements in violation of N.J.S.A. 40:55D-42.

The cost of failure to adhere to N.J.S.A. 40:55D-42 is severe: invalidation of approvals. Therefore, both the municipal and development community have been warned once again of the need to follow the Municipal Land Use Law in the exaction of off tract improvements.